“It is best to make money from women and children.” This sentence may seem like a joke, but after detailed analysis of consumption data, you will find that there is a certain business logic hidden behind this sentence.
The rise of her consumption has made women’s clothing a growth point with unlimited potential in the clothing industry, and has also prompted women’s clothing fabrics to start a rapid development model. Here we have to mention imitation silk, which is the leading fabric for women’s clothing. It has an appearance, luster, and feel similar to silk, but its price is much more affordable, so it is favored by consumers.
The order is somewhat good, but the profit is not high
Simulated silk fabrics have been the highlight of the textile market in the first half of the year and are a major fabric category that textile companies are happy to produce and operate.
Since the beginning of this year, various types of imitation silk have been selling well in the fabric market. Many imitation silk companies have experienced out-of-stock fabrics, and queues for production have also occurred from time to time. Some companies have even sold out the fabrics they had in stock 2-3 years ago. Sold out. It’s mid-June, is the imitation silk market still hot? Can orders from imitation silk companies survive the traditional off-season?
“Currently, the order can be made until July. In May, we received two orders of acceptable size, namely 100,000 meters of semi-gloss elastic satin and 50,000 meters of diamond silk single-sided linen. Due to the need to meet the deadline, we started the production The rate is still maintained at 100%.” said a weaving company.
Judging from company feedback, there are more or less orders from imitation silk companies, but the profits from the orders are really not high. For example, the diamond silk single-sided linen produced by the above-mentioned company has a relatively complex raw material composition, and the craftsmanship requires order-quality standards. In the past, the profits of such foreign trade orders were generally considerable, but this order made the company say “the profits are really too low!”
However, in the current textile market, having an order is better than not having an order. Having an order can at least maintain production operations and bring some profits; without an order, you can only produce inventory, which also increases the risk of stocking up. Not long ago, there was news in the market that weaving companies were competing for an order of 5 million meters of golden cotton. You must know that the daily profit of the machine for this order is less than 50 yuan.
As long as the price difference is big and the quality is passable, it’s fine
The main reason for the decrease in profits is that the price of fabrics cannot go up.
In our preliminary research, we found that prices and profits in the textile market are now becoming more transparent. As overcapacity intensifies, low-price competition often occurs, and even in the circle of friends, information about price cuts and goods sales can be seen everywhere. In such a market environment, it is not easy to maintain stable fabric prices, and it is even more difficult to increase prices.
A weaving company revealed, “Whether a variety is good or not depends not only on terminal demand, but also on pricing. For example, we have a high-twisted hemp, and there is still a batch of old inventory piled up in the warehouse. There is market demand for this fabric. But I can’t stand up to others who can offer lower prices. Originally, some domestic orders did not have such high requirements for fabric quality. As long as the weight is slightly lower, the price difference of 2-3 wool is enough to make buyers excited.”
According to monitoring data from Silkdu.com, in June, the gray fabric inventory of weaving companies in the sample showed a clear upward trend. As the off-season deepens, many weaving companies have gradually completed delivery of their early orders. However, they lack new orders and can only barely keep their machines running by producing part of their inventory. At this time, in order to compete for orders and consume their own inventory, price wars are inevitable.
Although when placing orders, customers will give priority to merchants with whom they have transactions. On the one hand, they can skip the early communication link, and on the other hand, they can also reduce the cost of trial and error. But “there are no permanent friends, only eternal interests.” When customers are wavering in the face of the temptation of low prices, they are very likely to lose orders.
In general, the rapid changes in fashion have also put forward higher requirements for fabric innovation. Fabrics can bring consumers not only comfort, but also the demand for fashion and functionality is also increasing day by day. If a company stops moving forward at the level of conventional fabrics, survival will only become more difficult.
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